DCC raises guidance after strong start to year
Group says operating profit will be 15 per cent ahead of previous year’s results
DCC chief executive Tommy Breen. The group said it had a strong start to its financial year. Photograph: Cyril Byrne/The Irish Times
International distribution and business support services group DCC said trading was ahead of expectations in the first quarter, giving the firm a strong start to its financial year.
The company increased its guidance for the year to March 31st 2014, estimating operating profit would grow 15 per cent year on year, up from previous estimates of 10 to 12 per cent.
In an interim management statement this morning, DCC said its energy division, the largest in the group, had traded “significantly ahead” of last year, as colder weather and acquisitions combined with organic volume growth to lift DCC Energy. Revenue at DCC Sercom was also outperforming year-ago figures as strong sales growth in IT and communications products continued.
DCC noted that in recent years, the first quarter of its financial year, which ended on June 30th, has accounted for less than 15 per cent of the group’s full year operating profit due to the seasonal nature of trading in its two largest divisions.
“Nonetheless, it is pleasing that DCC has traded well ahead of its expectations in the first quarter,” the company said.
The healthcare divsion was in line with expectations, trading ahead of the previus financial year as DCC Health & Beauty Solutions and the acquisition of Kent Pharmaceuticals at the end of February 2013 proved of benefit.
The group said earnings per share would increase by 13 per cent on the previous financial year’s results, beating prior estimates of 8 per cent to 10 per cent.